Equinor secures $3bn for Empire Wind 1 Project, setting stage for U.S. offshore wind leadership

Equinor has successfully reached financial close on its Empire Wind 1 project, securing a financing package of over $3 billion as of December 2024. This landmark achievement places the company at the forefront of the U.S. offshore wind sector, solidifying its role in advancing renewable energy solutions. Empire Wind 1 is expected to provide clean energy to 500,000 New York homes by 2027, reinforcing energy security and economic growth while addressing climate objectives.

What is Empire Wind 1 and Why Does It Matter?

Empire Wind 1 is the first phase of Equinor’s development in the offshore wind lease area acquired in 2017. Located 15–30 miles southeast of Long Island, the project spans 80,000 acres and boasts a contracted capacity of 810 MW. As the first offshore wind project to connect directly to the New York City grid, it represents a critical step toward meeting the state’s ambitious renewable energy goals.

With a total capital investment of approximately $5 billion, including redevelopment fees for the South Brooklyn Marine Terminal (SBMT), the project is poised to significantly transform the U.S. offshore wind landscape. Tax credits under the Investment Tax Credit (ITC) framework further enhance its financial sustainability, positioning Empire Wind 1 as a benchmark for the growing offshore wind sector in the United States.

How Empire Wind 1 is Driving Economic Growth

One of the project’s most significant contributions lies in its economic impact. The redevelopment of SBMT into a world-class offshore wind hub will create over 1,000 union jobs during the construction phase. Molly Morris, senior vice president for Renewables in the Americas at Equinor, highlighted the project’s potential to build a robust domestic supply chain while delivering sustainable energy. She expressed pride in the project’s ability to drive long-term economic benefits and support local communities.

Equinor’s commitment to economic revitalization extends to its use of SBMT as a central operations and maintenance hub for Empire Wind 1. This transformation aligns with broader U.S. initiatives to strengthen renewable energy infrastructure and foster job creation in clean energy industries.

Financing and Strategic Partnerships

The $3 billion financing for Empire Wind 1 reflects strong interest from leading financial institutions, enabling Equinor to secure competitive terms. A consortium of experienced lenders, alongside Equinor’s relationship banks, contributed to the successful financial close.

Equinor has also announced plans to farm down its stake in Empire Wind 1 to a new partner, a strategic move aimed at enhancing project value and reducing financial exposure. Jens Økland, acting executive vice president for Renewables at Equinor, emphasized that the financial close marks a key milestone as the company enters full execution mode. He highlighted Equinor’s focus on increasing project robustness and delivering long-term value.

The Bigger Picture: U.S. Offshore Wind Growth

The Empire Wind project exemplifies the U.S.’s transition toward renewable energy. Equinor’s collaboration with bp underscores this shift. While bp initially acquired a 50% share of Empire Wind and Beacon Wind assets in 2020 for $1.1 billion, a cash-neutral swap in 2024 granted Equinor full ownership of the Empire Wind lease.

The project’s power purchase agreement (PPA) with the New York State Energy Research and Development Authority (NYSERDA), secured in June 2024, guarantees a 25-year supply of renewable energy at $155.00 per MWh. This agreement ensures the project’s long-term financial viability while supporting New York’s climate goals.

Transforming Energy and Infrastructure

Beyond generating clean power, Empire Wind 1 will redefine infrastructure capabilities in the region. SBMT is set to become the largest dedicated offshore wind port in the United States, offering a template for future projects. The integration of onshore substations with offshore operations further cements the terminal’s role as a pivotal energy hub.

Equinor’s proactive approach to renewable energy development, combined with strategic financial and operational decisions, underscores its leadership in the global energy transition. Empire Wind 1 represents not only a triumph for clean energy but also a commitment to building a sustainable economic future.